FRENCH DEBT ACCORD.

Waikato Times, Volume 102, Issue 17222, 4 October 1927, Page 11

FRENCH DEBT ACCORD.

SEEN AS FAR OFF. PUBLIC OPINION OPPOSED. (From a Correspondent). PARIS, August 2-7. In view of the approaching general election there is no chance of the Mellon-Bercnger debt agreement receiving the approval of the French Parliament before the end of 1 928. Such was the definite indication given to-day in conversation with Louis Marin, Minister of Pensions. M. Marin, who is one of Premier Poincare’s closest advisers and leader of the Nationalist group in the Chamber of Deputies, said it was quite likely the Government would make another temporary debt arrangement covering the year 1928 and similar in character to the one on which payment was being made this year. The terms of this year’s agreement, provide for payment of 30,000,000 dollars, which is the same amount France would have paid had she ratified the Mcllou-Berengcr agreement. M. Marin believes France will willingly pay a like amount next year.

The Minister of Pensions explained that in the present slate of public opinion it would be impossible to obtain parliamentary agreement tying up the taxpayers for a period of sixty-two years. When the average Frenchman contemplated payment of the debt for more than sixty years lie threw up his hands in despair and said no. But when he .was told that an agreement had only been signed for twelve, months, even though the total payment was the same as under the Mellon-Bercnger accord, he accepted the situation without protest.

Another important facLor tending to discourage ratification of any long drawn-out agreement, it is pointed out in other quarters, is the movement in America for modification or even cancellation of the debt. Frenchmen realise that the latter goal is a distant one which may never be attained, but as regards the question’ of modification they have the firm impression that there is a growing atmosphere in the United States favourable to a substantial cut in the debt.

With such an idea gaining ground each month, advisers of the Government argue, it would be unwise for France to conclude a general agreement for the whole debt even were French public opinion not unalterably opposed to it.